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tv   FOX Business After the Bell  FOX Business  September 26, 2012 4:00pm-5:00pm EDT

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continue? and overall trends, i mean, now that it is this far down, will it begin an uptick? gold also. if we're in the an era of deflation, you have to expect gold to come down as it is a hedge against inflation, though ben bernanke hasn't stopped printing money, nor has the central bank in europe, so one has to expect that there is still some concern about inflation along the line. but again, gold as well as oil coming down, and look at the foreign markets. this is what we woke up to, and it continued throughout the day through our close. the foreign markets really getting hit, over 2% in some of these foreign markets and that, of course, weighing very heavily on both the dow and the s&p. well, when the bell begins -- when the bell rings, the action begins. has the september swoon finally begun? we have two top strategists who are going to duke it out, a bull and a bear. also 55% of new small business other thans say they would not
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start a company today. the reason? regulations. we're going to be talking to the ceo of the national federation of independent businesses about what they want to see get done. also top strategists breaking down how to play the housing recovery. since he last joined us, his recommendation is up more than 25%. now that we have today's pullback, is it time to get in again? we will ask him. but first, we're going to tell you what drove the markets with today's data download. stocks slipping today with all three major indices close anything the red, the s&p 500 posting its fifth straight day of losses. this is, as i said, the long losing streak since july. energy and technology were today's worst performing sectors, utility was today's biggest gainer. now, lots of action in the currency pits today. the euro fell to its lowest level in two weeks versus the dollar. political tension, of course, in the spain and greece driving the euro to an intraday low of $1.28. new home sales dropped in august from july, new home sales fell
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to a seasonally-adjusted annual rate of 373,000. this is a dip of .3% from the previous month. now, despite the month-over-month decline, new home sales in august were up more than 27% compare today a year ago. -- compared to a year ago. we have got mark sebastian in the pits of the cme, stephen saks and david trainer are going to duke it out. but let me start with mark, and, of course, i have to start with oil. how long does this dip go on? >> well, you know, i think it could go for a while. demand was not at $105 or $100 a barrel. it's closer to 80. so everything, in my opinion, above kind of 80, $85 a barrel is all risk premium from iran. so as long as we're above, you know, around 90, i think that's fairly priced. i think you're going to see some real resistance around $85 a barrel. but we could sink a little bit further. [inaudible conversations] david: the problems here are not
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going to be solved in a month, probably not in two months unless there's some kind of action on the part of israel n which case all bets are off. >> right. david: what about b the demand situation? i would have thought that the china slowdown would sort of telegraph to us by federal express was a much more important factor president pushe price down. >> yeah, that's also really important. i mean, oil's been relatively overpriced for several months because of all this risk premium. we're just seeing demand and risk premium come out of oil. so look for it to maybe trade down to $85 a barrel, which i think would be more fairly priced. david: and gold. let's talk about gold. that is coming down. i mentioned the fact that because we have, if anything, a deflationary environment right now, the inflation hedge, the inflation premium that you get from gold is going down. is that why the price is down? >> yeah. that's not going to last. um, you know, let's think about what's going on right now.
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we've got europe possibly falling apart, and we've got -- and the euro barely moving on that news. and you've got ben bernanke printing money. you know, i don't think that -- i think we got a little frothy on some of these commodity prices. look for them to form a bottom here and to start getting a bid. i think gold is going to start rallying here shortly along with soy, wheat and probably beef and pork. david: i tend to agree with you on gold anyway because the cb doesn't seem to be slowing down, and whether we like it or not, the fed's going to be printing money -- >> right. >> as long as we're getting free money from bernanke, i like to joke, gold's going to rally. i'm looking for $1800 an ounce relatively soon. but, you know, i think the real interesting thing is the s&p. we've got spain falling apart,
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and secession talk, and we've only managed to sell off around 2%? david: right, right. >> um, i think that's the real story here. we tested 1430, held. i'm looking for a rally, a relief rally tomorrow and a test of 1450 by the end of the week. david: all right. there's definitely going to be -- >> this is your opportunity to step in and buy. david: mark swas chan, we'll see you in a couple minutes when the s&p futures close. for the bulls we have steven saks, and for the bears we have david trainer, he is new constructs see ceo. david, i want to go to you first, you tend b to be more bearish on the subject. the market is kind of hanging in as we just heard from mark sebastian, it was a slight pulloff, but you look at oil and gold, and that seems to indicate something much more fundamental happening in the economy, disease -- does it not? >> i agree. look, there are major headwinds out there. it's hard to be positive about anything.
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europe's slowing down can, we're printing money like crazy, and when you're dealing with a world where the growth is coming from reducing friction as opposed to sort of increasing thrust, there's just not a lot of foundation there. there's nothing solid that investors or anyone can really stand on to be positive, in my opinion. david: and, stephen, i didn't like what ben bernanke and his buddies at the fed did, but the fact that they did that indicates that what they were seeing -- they have access to all kinds of data we don't have access to -- what they saw was something bordering on recession, otherwise they would not have gone all in as they did with qe3. >> yeah. you know, make no mistake, from the longer-term perspective, i agree. the negative impact of this easy money, you know, will catch up with us, but i think it's still several years down the road and probably comes most likely in the form of inflation. but right now particularly the equity markets both here in the u.s. and globally, it's the risk-on trade. the fact of the matter is with
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the monetary and fiscal policy that we have right now, with where corporate earnings are and the way corporate balance sheets look, it's just difficult not to be long u.s. ec by ity -- equities, particularly given the valuations really aren't that stretched. david: and, david, they said, you know, you can't fight the tape or the fed, and both indicate getting into equities right now, no? >> yeah. well, i mean, i think the fed's starting to get tired. are go going -- are we going to qe infinity? david: what qe3 was. >> that's right. and i think that's the point that, look, the fed is going to try and do whatever they can because the fed has so. with the fiscal regulatory environment, and i heard earlier 55% of small business owners wouldn't open a new business, look, you know, i would agree that u.s. equities are probably the best ec bities in the world, but there's no question there's going to be a lot of wheat separating from the chaff here. you have to be really selective. david: well, let me force you a little bit here, david.
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if you are selective, what are you buying? i mean, if you think that in a pullback that's due to come, which you see as much stronger than what happened today, what are you getting prepared to buy? >> you have to buy companies that make things cheaper and better for people. i think one of the great examples of that is apple, right? think about how many devices or things people used to have to buy that an ipod replaces; alarm clock, maps, flashlight, video game console. the list goes on and on. so, yeah, an iphone's expensive, but you think about the number of things you don't have to buy, and you see the power of the apple product. another good place to be is in the high-end premium quality energy companies like exxon, companies that have historically been able to create value for not only their shareholders, but for consumers by finding more efficient ways to deliver something we all need which is energy. david: and vonage, you know, it helps folks to lower their costs, lower their phone costs. you think that's a good bet.
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>> that's right, i love vonage. vonage is trading at a price that implies its profits are going to permanently decline by 30 or 40%, and when you're in a business that makes things cheaper for people, they've recently been able to fortify their offerings with some patents they've gotten, that's where consumers will spend. but we're dealing with a world where 60% of all growth comes from consumption, and consumers the way the job market looks are in the tank. it's very hard to be positive about growth or anything else except products sold by companies that make things cheaper and easier. david: all right. let's me go to steven and ask the reverse question if i can, steven. are there any areas of the marketplace particularly that even a bull such as yourself should avoid? >> are well, i think given what we've seen with the market over the last particularly couple of months since the early summer months, the sectors that have underperformed. i think if you look at industrials and materials, if you look at health care, and this is all relative to,
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generally speaking, the s&p 500. those sectors that have underperformed, that haven't seen the moves, that haven't seen, more importantly, the equity, the cash flows that we have seen come into the ec by i -- equity markets, those are the sectors i would avoid. again, in the environment we're in certainly driven by a lot of momentum and a lot of expectation of future growth. those underperforming sectors will probably continue to underperform. and, again, those companies, you know, that were mentioned there in the broader sectors of tech and telecom in particular, those are the broad sectors that have been, actually, outperforming the equity market here in the u.s., and that's probably where the momentum's going to stay. david: hey, david, finally, to you. of we have this battle going on inside the fed. we have plosser who was on our air yesterday saying, in fact, that the fed is doing much too much, and then you have charles evans, the chicago fed president, coming back today saying that if we hadn't done what we did with qe3, we were going to have a lost decade. actually, we've already had a lost decade, but he's saying
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another lost decade. where do you think this is going to end, this battle within the fed that, frankly, is new in. >> i think that they're going to continue on the path that they're taking with the argument that they've done too much comes from the philosophy that, you know, if you keep spoiling the child, he'll remain spoiled, and the argument that you've got to do what you've got to do is one where, i think, they are politically locked in to maintaining because, let's face it, politically it would be suicide for these guys to do anything but to make sure that the equity markets do not tank. and let me be clear, i think that's what they'll do. i don't see a huge downfall in the equity markets. regulators, politicians, everyone will do everything they can o support that. but the growth in ecties or the bullishness has got to be selective. you've got to roll up your sleeves, do your homework and pick stocks intelligencely. david: thank you for bringing those stocks to us. david trainer, steven zacks, good to see you. housing stocks getting hammered
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today even though we got a word of a record rise in prices, so how do you play this very confusing housing market? some stats good, some stats bad. we have a top an who knows how. his pick from the last time he was here is up 25%. and small businesses could be facing up to $100 million a year in costs on new regulations that are being proposed. the ceo of the national federation of independent businesses joining us to tell us how they are planning to fight back. also, the tablet market just got more crowded with two new models that hit the market. is apple going to lose its edge with the ipad? we have details straight ahead in today's "speed read." ♪ [ male announcer ] what if you had thermal night-vision goggles,
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david: we have some breaking news to report. google's brazilian chief has been arrested over his refusal to remove youtube videos that allegedly slander a may yore
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allocate in brazil. we're going to bring you the latest as we receive it, not really affecting the price of the shares, but it's an interesting intrigue happening within google. s&p futures closing right now, let's go back to mark sebastian. does it look like this slide might continue? >> no, i think we're about done. with the way we've closed, basically unchanged after the bell, if we get any type of decent economic data tomorrow morning, look for a big surge up. i think there's pent-up buying demand kind of building with the way we closed, is so i'm looking for us to rally tomorrow. david: okay. and we do have some interesting economic, durable can goods figures coming in, that's going to weigh on what happens to the markets as well. thank you very much, mark. we'll see you later. let's go to nicole petallides on the new york stock exchange, see how consumer stocks fared. >> reporter: what's very interesting, david, and we've seen it over many, many years, the consumer is very resill cent. and so even in a tough economy,
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sometimes those consumer stocks are the ones that do better than the rest, and in this case exactly what we saw today. names like netflix, right? y'all know that one. how about family dollar stores? chlorox, everybody needs their bleach regardless of the tough economy. also tyson foods and autozone just to name a few. that's a group that was quite defensive and shows the resiliency of the consumer. david: nicole, thank you very much. well, housing stocks, big story, they, of course, were down as new home sales failed to meet expectationsings -- expectations, but home sales were up in the august. if you believe now is the time to invest, where do you turn? we go to robert wettenhall who has provided us with extraordinary information in the past, last time you picked several stocks that were up 25%, but they were down today significantly.
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hovnanian down almost 6 president. why down so much in one day? >> markets had a fantastic run. these stocks have definitely outperformed the market, and the news today makes people question how real is the upward improvement in housing. our view, it's definitely real when you see an 11% improvement in pricing, you've got to be optimistic. lennar reported on wednesday, fantastic. david: we have those numbers, i think we can put it up on the screen the. lennar homes, the quarter ending in august. homes delivered, 3,665. home orders, 4,198, that's up 44%, as you mentioned, and the backlogs, look at this, backlogs were up 79%, 4,513 homes. so it does look particularly when you look at those backlogs like they've got some work to do in the future that's going to gain them money. >> that's fantastic. they're extremely well positioned given the current cadence of the recovery.
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so we're definitely at the front end of a multiyear recovery in housing, and our big call is we're excited about the pricing environment for the first time in four or five years. all of the home builder companies are going to benefit. this will aid profitability and could be a catalyst for a further leg up on the group. david: let's talk about why that is happening. one of the reasons i think is because the listing of foreclosed properties is down, that is, there's a clearing of the fore cloalzed properties, down by 45% from two years ago. then you also had new home sales hover at a two-year high, but let's go to the great hollowing out of housing construction. what has happened is so many people over the past three years have been reluctant to build new houses that you have far fewer contractors, housing contractors. now, most of these are small-time contractors, but in 2001 just to give you an idea, you had 107,000. 2006, the height of the market, you had 125,000 of these contractors. in 2011 look at the drop,
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86,000. that means you had far fewer people able to build houses and, of course, when you have far less supply, the prices go up. >> i'm totally onboard with that view. and our general thesis is there's been a massive liquidation of foreclosure inventory. it peaked out in the third quarter of 2011 at 20 months, we're down to 15 months, and that's driving lore. so your alternatives now are you can represent or look to buy an existing -- rent or look to buy an existing home or new home. mortgage rates are at all-time lows, so we think the housing market is a bright spot in an otherwise sluggish economy. david: the question is how much longer that can continue because it still depends on job growth, household income. job growth is down, household income is down, continues to go down. that doesn't bode well for home buyers in the future, does it? >> you know what? the long-term demographics, supply, demand and given where we are in the recovery, we're still comfortable with a big call that the recovery's going
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to move forward at a good clip. david: hold on a second, because we are nowhere near a good clip in this recovery. we're less than 2%. that is the slowest recovery in the history of recessions. >> in the housing market of we've definitely remains concerned about anemic gdp growth, structurally high unemployment, and we view those as very powerful headwinds which are just going to slow the pace of the housing -- david: let me put it into perspective here. since the economic recovery began in june of 2009, now this is, again, since the recovery began, household incomes are down 5.7%. now, when you're in a recovery, incomes are supposed to go up, not down. >> just, i'm just talking specifically to the housing recovery which has been deferred and delayed. that's gaining steam. i totally agree with your insightful points on the broader economy. we're experiencing anemic gdp growth. david: top pick on housing? >> lennar and kb homes.
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david: appreciate it. all right, well, mitt romney's been accused of being a little light on specifics, but we just got the specifics of a plan he is likely to lay out that could totally revamp our tax code. the taxes that you pay. exclusive details from our team in washington. also, take a look at this. look, ma, no hands. there's nobody driving that car, folks. one state is closer than ever to making the self-driving car a reality. people are shaking their head no, they can't believe it in studio. will you? we'll give you the details straight ahead. ♪ 4g lte has the fastest speeds.
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so let's talk about coverage. based on this chart, who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage. verizon. verizon. we're going to go to another chart. it doesn't really matter how you present it. it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined.
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>> the romney campaign refuses to detail which dedougs or how much in preferences congress
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should e eliminate. some of the more costly, those for employer-provided health plans, mortgage interest, retirement plans and interest on state and local bonds. there are thousands more, david. as for which ones stay and go, that's congress' call. david: the bottom line, the philosophy behind this is that it will remove or it'll move some of that income from tax shelters like the cayman islands or whatever they put it in, back into the economy, something that stimulates the economy, that grows the economy and creates jobs. that's the plan anyway, correct? >> part of that plan involves international treatment of money, the other part we were discussing is you have all of these tax deductions. there are thousands of other ones, you lower everyone's rate, but you get fewer tax deductions, but eventually you get a system that takes in money, that also assumes economic growth and doesn't distort the tax system so much. david: when president obama says it is going to cost the middle class, that's because when it
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comes time to actually adding up the numbers and seeing if we get the same amount of tax revenue or less or more, you have to make some deductions, one of which is that this will stimulate the economy and, thus, more revenue will come in. the president is not making that assumption, correct? >> there is an assumption out there made by the tax policy center that basically says the only way you're going to pay for this is by hitting the middle class, by taking their deductions away. heritage comes back, another foundation, a conservative foundation, and says, no, they cooked the books on that whole thing. when you look at how all this is going to work out, it is still the decision of congress to figure out which deductions stay or go because romney has knotts detailed those things. part of -- has not detailed those things. maybe getting rid of those deductions don't pay for the entire tax cut, something called dynamic scoring. you assume economic growth pays for some of that, something very controversial down down here, but that's still an element of it. david: controversial, but it's
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happened every time we've had these lowering of tax rates. thanks very much, rich. well, if you think the new federal regulations are hitting small businesses harder than big ones, dan danner agrees with you, and he has the ammunition for you to back up your arguments. that is coming up. plus, research in motion is set to report earnings tomorrow, so will the new blackberry 10 save the struggling stock? we're going to be asking an analyst straight ahead.
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david: it is time for a quick speed read of the day's other headlines. five stories in a minute. kraft foods group will replace alpha natural resources after trading on act 21st. kohl's is planning to
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open 12 new stores and hire 1500 workers across 10 states this fall. they plan to remodel existing shoppers this holiday season and will hire workers this holiday season. barnes & noble will have two tablets. 7 inch screen starting at 200 bucks and a 89 inch screen -- 9 inch screen at $250. governor jerry brown approved testing of google's self-driving cars on the road. halloween is not just for kids. national retail federation says pet owners will spend $700 million for costumes on their animals. that is up 20% from last year. that is today's speed read. [buzzer] well -- got to wait for the bell. a new study says 55% of small business owners would not start a company today. those business owners say the president's regulatory policies have hurt their businesses and that's why they wouldn't go you there
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the rigmarole of starting a new one. danny romeroer is president and ceo of national federation of independent business. good to see you. i've seen these sort of surveys before in the past. i don't recall a time when 55%, a majority of the small businesses says they wouldn't do it again. is that new? >> it is new and i think it is a chilling number. if saying to entrepreneurs, risk-takers, now is not the time to invest, now is not the time to start a business and grow jobs, then our outlook for making the economy better and increasing jobs is pretty grim. david: dan, to me it is reminiscent of the late 1970s. i remember the same kind of doom and gloom thoughts going through minds of business owners back then. we should mention there were very revolutionary up starts started in those times like fedex, apple and the rest of them. however it is, it is kind of reminiscent of that time period, is it not? >> it is and i think most of
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our small business owners were around then think it is worse now. they think there's a fundamental misunderstanding, unappreciation of what it takes to start and grow and operate a business. david: well, and it particularly falls heavy, i think on small businesses, which you represent. more than the larger. a lot of these regulations coming out of washington are one size fits all, whether it's health care, the new health care law. whether it is work pleas rules, a whole slew of things. of course the financial regulations. in fact i have to take issue with something one of your proponents said, blanche lincoln, the former senator who now works for your organization. we had a little problem on this issue one size fits all regs and particularly small banks. let's take a listen and get your response. i was thinking of dodd-frank which treats small banks basically same as big ones and small banks are getting killed. >> no, they're not. the small banks are not getting killed.
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david: we have them on all the time, senator, i will give you names of ones we have on that said they are getting killed. >> okay. i'll tell you what. there were a lot of banks in a lot of positions where they shouldn't have been. we tried very hard not to treat them all as the same. the small banks don't have all of the same regulations that some of the larger financial institutions. david: but that's not what i'm hearing from a lot of small banks. they say we are forced as small institutions to deal with rules frankly designed in many cases by these large banks and all of their lawyers and lobbyistsp side the beltway. go ahead, dan. >> well, we are hearing i think probably a little bit more what you're hearing. whether it was unintended consequences or not, we're hearing from small community banks who did not have a lot of bad loans, did not have a lot of bad debt and say they're still being hammered by the regulators and it is making it very difficult for them to make loans to small
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businesses who have good credit, who are running in the black, and who have never missed a payment but it is still hard to make loans to them because the regulators are sitting on them. david: so what do we do? we're stuck with this situation. we have 11,000 new federal regulations since president obama took over. that is much more than other presidents in the same amount of time. what do we do? the small business voice is so hard to be heard inside the beltway? >> well it is. you know what? what we're trying to do is to be active in this election cycle to frankly elect more small business owners at every level. to speak to every candidate about the significance of small business and the economy and creating jobs and to make a difference in november. david: and how successful are you being? are you getting anybody opening those doors in washington or are they still being slammed in your face? >> no, we're getting some.
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it's, i agree with your earlier comment. i think there is still a tendency for one size fits all. what works for general motors doesn't work for a small employer with 10 employees. it just does not. so i think it is a constant uphill battle to keep banging away, if you want to create jobs these are the people on main street that get it done. david: we're talking about regulations. let's talk briefly about taxes. governor romney says that his tax policies, that he wants to implement if elected will particularly affect small is abouts in a positive way. let's play the tape and get your response. >> look small businesses typically pay tax at the individual tax rate and so our individual income, taxes are ones i want to reform. make them simpler. i want to make the rates down. don't expect a huge cut in taxes because i will lower deductions and exemptions. but by bringing rates down we'll let small businesses keep more of their money so
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they can hire more people. david: will lower rates and fewer deductions help small businesses? >> absolutely. i mean one of the things that's a fundamental debate right now is impact of the top rate. if you make over $250,000 and you're an s corp or an llc, that is not all take-home. you're not rich. that is your ability to invest in your business and to create jobs and one of the things the president said those are all rich people and we need to tax them more. we think that is fundamentally wrong. you're taxing job creators and that will decrease, not increase jobs. david: danny romeroer, - dan danner. national fed race of independent business. >> thank you. david: could this be return of back barry. because of increased subscriber growth, rim stock
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is a up 11% the past two days. should you get in on the momentum? we have an analyst up ahead next. ♪ . greetings from the windy city of chicago.
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david: here is a fox business brief. more banks are having issues with their web sites apparently as a result of those cyber attacks. u.s. bancorp is facing problems similar to what other banks dealt with last week. according to reuters, pnc financial and wells fargo customers are also having issues accessing the sites. boeing ceo's says executives are becoming more nervous about the fiscal cliff. james mcinerney says lack of clarity on taxes and regulation holding job creation. he would not be comfortable as part of an increase as part of a fiscal cliff deal. gold will go up to $3,000 at
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merrill lynch. the precious metals rally is likely to gather strength over the long term. b-of-a last week raised gold's target to $2400. that's the latest from the fox business, giving you the power to prosper. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy. to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better. [ female announcer ] our wells fargo bankers are here to listen, offer guidance and provide you with options tailored to your business.
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we've loaned more money to small businesses than any other bank for ten years running. so come talk to us to see how we can help. wells fargo. together we'll go far. david: investors showing research in motion some love over the last couple days after the company surprised the street saying its subscriber base had actually grown. so is the blackberry really about to rebound or is this just a dead-cat bounce? we have the managing director and senior telecom equipment analyst at mkm partners and he joins me now. mike, good to see you. thanks for coming in. >> thank you, david. david: by the way, first of all this may sound kind of sacrilegious, do you believe the subscriber numbers? is it possible they are fudged somehow? >> no, i think those are correct numbers but the thing about it there is a shift to latin america from southeast asia. they're losing subscribers
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in the u.s. and canada and u.k. but getting subscribers in emerging markets. that is what is going on there. david: why is it they are winning in these other markets rather than iphone and apple? >> i'm sorry, you're breaking up. i didn't hear the question. david: i'm asking about the competition. you know, iphone, apple is very interested in making inroads in these other markets. why are they not beating blackberry in these other markets? >> well look, it is lower priced point block berries for emerging markets doing well. the iphone is too high-end for those markets. most of the android models are too high-end for those markets. rim we'll be watching will determine the success of the company going forward is the launch of the blackberry 10 operating system in january and that will take apple head on in the high end smartphone market. before yesterday's developer conference and before the demonstration they gave, i would have given rim less than a 10% chance of making it but from what i saw yesterday, the enthusiasm
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from the developers and the quality of the operating system i would raise that now to about 25%. so i'm certainly more upbeat on their prospects but still think they are fighting an uphill battle. david: what was it about the bb 10, the blackberry 10 that piqued your interest? >> seems like first of all people already are familiar with blackberry. so unlike the windows 8 phones from nokia and others this is something we're familiar with. but secondly, just the way you handle the phone the ability to handle in one hand, to not really open any applications but have all your messaging, all your social media and your meetings, able to separate personal from business, fast predictive texts it did. you can walk through the airport with bag over one shoulder and bag in one hand and do everything they need to do. looks like they have a fighting chance. >> on the other hand the new iphone, i held it in my hand it is 20% lighter. it is 20% thinner. it is easier to hold in one
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hand like a blackberry. >> yeah, i certainly agree with that. i think the, i think that the iphone 5 and ios 6 are both good products. this really comes down to is there a room for third eowe system player? we have the apple ecosystem. android ecosystem. rim, blackberry and windows are fighting it out. i'm giving blackberry upper hand over windows. i would not bet windows 8 or windows will be a popular operating system. as you identified rim is up 11% in last couple days. i think momentum will continue this week. they preannounced a positive subscriber number. i think the important number we'll get tomorrow after the close they're building their cash number. so for this august numb fwer they're reporting revenues are down 30% year-over-year. they will lose 50 cents per earnings. but the free cash flow is good. cash was 2.2 billion last quarter. if they come in 2.5 billion
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in cash this quarter which i think they will, i think we'll get another 10 to 15% this week. they really need that cash reserve to launch this new blackberry 10 operating system. david: so cash flow will be the one key element you're going to be looking at tomorrow with earnings? >> absolutely. it was subscriber and cash. now we know the subscriber number it's cash. small changes, do they miss by a little on revenue and eps not such a big deal right now. david: mike, we have to go. a year from now will i be holding a blackberry in my hand, an iphone or something else? >> like i said before i'm giving it about a 25% chance you will be holding a blackberry. david: that is not very good. >> but yesterday, yesterday before 11:00 30 a.m. it was about 5%. so it is moving in the right direction. david: mike genevese, thanks for coming in mkm partners. >> thank you. david: violent riots breaking out in greece and spain over new austerity
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measures. we have the very latest from overseas and how that will of affect the markets coming next. want to try to crack it? yeah, that's the way to do it! now we need a little bit more... a little bit more vanilla? this is great! [ male announcer ] at humana, we believe there's never been a better time to share your passions... because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you, to listen and understand what's important to you. it's how we help you choose the right humana medicare plan for you. because when your medicare is taken care of, you can spend more time sharing your passions. wow.
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david: protests broke out in greece today, turning
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violent as police used tear gas and pepper spray on demonstrators around the greek parliament. this as protesters in spain take to the streets for a second day. fox news's amy kellogg reports. >> 70,000 people came out for the demonstration there protesting further cuts that are coming their way. many in greece are already desperate, having seen their salaries drop by more than 30% in many cases since austerity became a way of life for the greek people. social safety nets are not able to save people. one person at the demonstration today was quoted as saying, we are bleeding. we can't take it anymore. the new conservative-led coalition government is said to be shaky and some worry it could easily fall if social unrest keeps swelling. spain is also on edge after yesterday's violent protests that led to dozens of injuries and arrests. there's been further unrest in the bath country today. they are not asking the e.u.
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for a formal bailout. those banks were particularly damaged after the property bubble burst. unemployment in spain is 24%. youth unemployment is closer to 50% which is very troubling. spain's woes continue with the catalonia region including barcelona is trying to secede from spain possibly. this is a very critical week for spain tomorrow. we'll learn more about further budget cuts that will be introduced. and then on friday it is understood that the spanish people will learn more details just exactly what the state of their banks is. i have heard spaniards say that one of their concerns is that they simply don't quite understand how bad it is or isn't. in london, ail my kellogg, fox business news. david: amy, thank you very much. three key pieces of data set to hit the tape tomorrow. we have the numbers you need to know that could move your money. also, get this, one airline launching a quiet zone of child-free seats. we'll tell you who when we
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david: it's time to go "off the desk". air asia. that is a company that announced plans for a quiet zone allowing passengers to avoid crying babies and young children. the zone will consist of several rows toward the front of the rain that will not allow kids under 12 years old. there will be no extra fee to book the seats which will be in high demand.
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tomorrow very busy day. the number one thing to watch which could move markets will be final reading on second quarter gdp. it is all set to be released at 8:30 a.m. we'll cover it here on fbn. you don't have to change your channels from now until then. economists are expecting reading of 1.7%. that is pretty much in line with the previous estimate. we hope to see you tomorrow. "money with melissa francis" is now. melissa: i'm melissa francis and here's what's "money" tonight. ahmadinejad takes the stage at the u.n. the iranian president ripped sanctions against his country but why is the largest oil trading firm in the world is reportedly buying from iran as we speak? how is this possible? we'll get insight from former u.n. ambassador to the u.n., stuart holiday. plus riots rock europe. hundreds of thousands of people take to the streets in athens following violent protests in spain. how far is the u.s. from crossing the

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